Legal Definitions - shareholder oppression

Shareholder oppression is a term used to describe the unfair treatment of minority shareholders by those in control of a corporation, especially in a close corporation. This can include actions such as withholdinginformation, denying access to corporate records, or excluding minority shareholders from important decisions.

For example, if a group of majority shareholders in a close corporation decides to sell the company without consulting the minority shareholders or offering them a fair price for their shares, this could be considered shareholder oppression.

Shareholder oppression can have serious financial consequences for minority shareholders, who may be forced to sell their shares at a loss or lose their investment entirely. In some cases, minority shareholders may be able to take legal action to protect their rights and seek compensation for any damages they have suffered.